The software company, which has its European headquarters in Limerick, will bring its widely used load balancing technology to the Progress portfolio.
Along with its latest earnings report, Massachusetts-headquartered Progress Software announced the acquisition of Kemp Technologies in a $258m cash deal.
Progress reported a fiscal third-quarter profit of $31m on Thursday (23 September) and a projection of full-year revenue up to $552m.
The Kemp acquisition is expected to close in October 2021, subject to regulatory approvals.
A veteran software company founded in the ’80s, Progress works with more than 100,000 enterprise customers, helping them to create and deploy business applications.
The Kemp acquisition adds to Progress Software’s comprehensive product stack with complementary products. The merger of the two will extend Progress’s portfolio across DevOps, application development, data connectivity and digital experience with the addition of application experience management from Kemp.
Privately-held Kemp’s virtual load balancing technology has seen more than 100,000 deployments in 138 countries. In a statement on the acquisition, Progress said that Kemp will bring “solid levels of recurring revenue” and “a loyal customer base” to the company.
“Now more than ever, businesses recognise that their applications must always be available and highly performant,” said Progress CEO Yogesh Gupta. “The Kemp products address this exact need and complement our portfolio of best-in-class products to develop, deploy and manage high-impact applications.”
Headquartered in New York, Kemp is led by Limerick-man Ray Downes.
“We are extremely proud of what we’ve been able to achieve as a business,” said CEO Downes. “As part of Progress, I am confident Kemp will thrive in the next chapter of its journey.”
Downes added that the companies have a “cultural alignment” that will ensure the success of the acquisition.
Kemp was founded in 2000 and by the end of the decade was looking to establish a European presence from Ireland. The company settled in Limerick and took on Downes as CEO in 2012, a move that soon saw him return to work in the US.
The company builds technology that balances user traffic between multiple application servers in physical, virtual or cloud environments. Its flagship LoadMaster and Flowmon Network Visibility products monitor application performance, using machine learning to identify anomalies and alert IT managers before users are impacted.
It is the kind of background technology that is essential for everyday online activity, such as keeping e-commerce websites operating during high-traffic surges such as Black Friday.
“The acquisition of Kemp also furthers our total growth strategy and will enable us to add scale and cash flow, creating significant shareholder value,” said Gupta.